Term life insurance covers you for a set period: 10, 20 or 30 years. Permanent life insurance (whole life and IUL) covers you for life and builds cash value.
When term makes sense
- You need the most coverage for the lowest cost
- Your need has an end date (mortgage, kids at home)
When permanent makes sense
- You want coverage that never expires
- You want a tax-advantaged asset you can borrow from
- You're planning a legacy or estate
The blended approach
Many families pair affordable term coverage for temporary needs with a permanent policy for lifelong needs. Many term policies can also be converted to permanent coverage later without a new medical exam, a valuable option if your health changes.
Quick answer
Is term or permanent life insurance better?
Neither is better for everyone. Term is efficient for temporary needs; permanent is built for lifelong protection and cash value.